Economy has taught us a lot: Kazakh PM

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ASTANA. KAZINFORM Prime Minister of Kazakhstan Bakytzhan Sagintayev said that cutting budget expenditures due to low oil prices taught the government a lot, Kazinform correspondent reports.

"Presently, the natural resources sector yields 43 percent of the treasury revenue. If we continue that way, for sure, we will not accomplish the goals set by the President of the country. In this resource sector, we must also carry out technological modernization, reduce expenditure, get more profit even based on current prices. At the prices over $100 [a barrel of oil], we had expenses only. Today the price is within $60, but we also have lived at $40. We also cut our needless expenses in the budget, and this has taught us a lot," the Prime Minister said, addressing the first Kazakhstan Global Investment Roundtable dedicated to the issues of investment into the Kazakh economy.

Bakytzhan Sagintayev once again reminded that Kazakhstan is not going to give up its resource advantage. However, the competitiveness should increase, he added. "On the other hand, if we want to get 6-7 percent economic growth to enter the world's top 30 developed countries, we need other sectors that will drive the growth of our economy rather than the natural resources sector. In this respect, there is no escaping R&D and new technologies," the Head of the Government said.

He summarized that earlier the business took little interest in investing in research and development, but now it is in high demand and the work is underway along this avenue.

 

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